Secure sales method and system in an online auction

ABSTRACT

The invention is a method for using a payment and inspection service to purchase merchandise on an online sale website. A buyer or seller can select using a payment and inspection service. The buyer pays the payment and inspection service, which holds the payment. The seller ships the item to a store where the payment and inspection service is located. The buyer goes to the store and while being monitored by an agent or employee of the service, the buyer inspects the merchandise. If the buyer accepts the item, he leaves the store with the item and the service releases the payment to the seller. If the buyer does not want to accept the item, he rejects the item, which is then repacked and returned to the seller, and the service returns the payment, less cost of shipping the item back to the seller, to the buyer.

RELATED APPLICATION DATA

This application is a continuation of U.S. application Ser. No.11/115,881 filed on Apr. 26, 2005, and priority is claimed for thisearlier filing under 35 U.S.C. § 120. Applicant further incorporatesthis previous filing by reference.

TECHNICAL FIELD OF THE INVENTION

A secure method for purchasing items over a computer-based sale site.

BACKGROUND OF THE INVENTION

The popularity of Internet or online auction and similar sale sitesoffering items for sale online has grown considerably in recent years.Users of these sites can post items for sale as either an auctionselling to the highest bidder or a set sale price. Internet auctionsoffer a “virtual” flea market with an endless variety of merchandiseavailable for sale accessing an Internet website using a computer. InJanuary 2002, over 32 million Americans visited an online auction site.

This explosion in e-commerce has fueled a concurrent increase in fraud.Common frauds include late shipments by the seller beyond the agreedshipping date. Another common fraud is a completely fraudulent sale withno merchandise shipped at all. Inferior merchandise or differentmerchandise from that stated in the posted listing is another frequentfraud. Bogus online pay sites used by the buyer to make the payment withthe pay site pocketing the payment is another fraud. Bogus escrowservices have also been set up by the seller, buyer, or a third party tosteal payment for the item. Fraudulent sellers that do not intend toship the merchandise is another problem.

Other frauds frequently encountered on online auctions include bidsiphoning. This occurs when a con artist lures bidders off a legitimateauction site by offering to sell the same item for less to the bidder.Shill bidding is another fraud that occurs when a seller bids on his ownauction item to increase price. This has been an increasing problem oneBay and other auction sites. Bid shielding is another fraud where afraudulent buyer submits a very high bid beyond the item's value. Thisdiscourages other bidders from placing bids, but when the bid is nearingits closing, the fraudulent buyer retracts the bid so that a confederatecan bid at a much lower price and purchase the item for less than itwould have legitimately brought.

Sale site operators are increasingly concerned with fraud and thepotential for fraud, because fraud has an increasing impact on profitsof the site providers. For example, eBay has lost significant valuebecause of poor financial performance which is attributable in part tothe fraudulent activities surrounding sales on their website. Both buyerand seller frauds occur, but it is seller fraud that most concernsusers, and auction fraud is the most common Internet fraud complaintreported.

One prior art method of addressing this problem is an escrow service. Intheory, a buyer uses an escrow service to pay for the goods. The goodsare not shipped until the escrow services reports receipt of the funds.The escrow service receives the payment from the buyer and forwards itto the seller only after the buyer confirms satisfactory delivery.However, many escrow services are fraudulent, and the false nature ofthe service is rarely discovered until the defrauded seller or buyer hasalready suffered the loss.

Furthermore, even with legitimate escrow services, there are potentialproblems for the seller. For example, a buyer may return an item afterusing it with a claim that it has not been used. For example, a weddingor prom dress actually worn can be returned with the claim that it isnot used. Books can be read or even photocopied. Products can be openedor tampered with and parts or accessories removed prior to delivery tothe purchaser or prior to return to the seller for a refund. A bogusproduct, such as a TV chassis filled with weight ballast, can bereturned as the genuine item for a refund, or an identical used and/orbroken product returned for a full refund.

There is a need for a method of ensuring satisfactory delivery of itemsordered online and payment for those items with little or no chance offraud by either the seller or the buyer. A method where the item can beinspected and returned without chances of tampering, alteration, orswitching would prevent most if not all of these types of frauds.

SUMMARY OF THE INVENTION

The invention is a method for securely inspecting merchandise purchasedonline prior to the transfer of the funds and completion of the onlinepurchase. The buyer or seller can select use of this service. Theservice can be paid for by the sale site, a service charge to the buyeror the seller, or a flat rate to the service operator. After the itemsare purchased online, the items are sent to a storefront payment andinspection site operated by an escrow payment service. The itempurchased is shipped to the inspection storefront by FedEx, UPS, DHL,mail, or other shipper. The escrow service receives the payment of thepurchase price (and shipping costs) for the item. Notification ofshipment and arrival at the storefront is provided to the buyer, andthen the buyer goes to the storefront and inspects the purchased itemwithin a predetermined period of time.

Once at the storefront, the buyer can examine the item purchased anddecide whether to accept it or reject the merchandise. The merchandisedoes not leave the inspection site, and buyer has predetermined timeframe to make the purchase decision. The buyer can be monitored by anin-person representative or by camera to assure nothing is done to themerchandise. If the buyer accepts the merchandise, the funds held by theescrow service are released to the seller. If the buyer rejects themerchandise, the funds held by the escrow service are refunded to thebuyer, sometimes with an appropriate deduction for shipping. Therejected merchandise is returned to the seller without leaving thecontrol of the payment and inspection service, so the seller can beassured that the item is being returned unused, unaltered, and notswitched with other products.

BRIEF DESCRIPTION OF THE DRAWINGS

The objects and features of the invention will become more readilyunderstood from the following detailed description and appended claimswhen read in conjunction with the accompanying drawings in which likenumerals represent like elements and in which:

FIG. 1 shows an embodiment of the customer window at the payment andinspection site.

FIG. 2 is a process flow schematic representation of the prior artmethod for a seller using an online auction website;

FIG. 3 is a process flow schematic representation of the prior artmethod for a buyer using an online auction website;

FIG. 4 is a process flow schematic representation of the method for aseller using an online auction website under the invention;

FIG. 5 is a process flow schematic representation of the method for abuyer using an online auction website under the invention;

FIG. 6 is a process flow schematic representation of the prior artmethod for a seller using an online sale website;

FIG. 7 is a process flow schematic representation of the prior artmethod for a buyer using an online sale website;

FIG. 8 is a process flow schematic representation of the method for aseller using an online sale website under the invention;

FIG. 9 is a process flow schematic representation of the method for abuyer using an online sale website under the invention

DESCRIPTION OF THE PREFERRED EMBODIMENTS

FIG. 1 shows an embodiment for the inspection site in a store setting.The inspection site 5 can be a counter 10 located in space rented,leased or franchised to a store by the payment and inspection service,such as a FedEx Kinko's, Office Depot, Wal-Mart, or other similar retailstore operation. Or the inspection site 5 can be owned by the serviceitself as stand-alone operation. The inspection site 5 has a counter 10with a clerk 15. The payment and inspection service receives the shippedmerchandise 20, which is made available when the buyer 30 comes to theinspection site 5.

Typically, the buyer 30 approaches the clerk 5, identifies himself tothe clerk 15, and requests the shipped merchandise 20 so he can unpackand inspect the purchased item. The clerk 15 provides access to theshipped merchandise 20 at the counter 10. The buyer 30 unpacks andinspects the shipped merchandise 420 on the counter 10. While the buyer30 unpacks and inspects the shipped merchandise 20, the clerk 15 and/ora camera surveillance system 17 monitors the buyer 30. The buyer 30 isnot left unmonitored until he accepts the shipped merchandise 20. If thebuyer 30 accepts the shipped merchandise 20, then the clerk 15 contactsthe service so that the purchase funds are released to the seller, lessany fees, such as a fee for the service. If the buyer 30 rejects theshipped merchandise 20, then the clerk 15 repacks the shippedmerchandise 20 for return to the seller and contacts the service so thatthe purchase funds are refunded to the seller, less any amount requiredfor return shipping or other fees, such as a fee for the service.

Although the inspection site is a store location in the preferredembodiment, numerous alternative embodiments are possible. Rather than astore, the inspection site can simply be a delivery truck with orwithout a built-in inspection compartment. The inspection site can evenbe at the buyer's home or shipping location under observation of thedelivery driver or a delivery clerk, or it can be at a shippers'location, such as a UPS or FedEx shipping facility.

FIG. 2 shows an example of a process flow for listing an item on anonline auction under the prior art. The process starts at step 105. Instep 110, the seller accesses the auction website over the Internet. Instep 115, the seller registers to sell the item and specify anyparticulars. At this point in the process, the seller will select themode of payment for the item, specify the shipping procedures, describethe item, set a minimum bid, and select the duration time for theauction. In step 120, the seller lists the item for auction. Any feesare paid and the seller uploads any available pictures if desired. Instep 125, the seller will engage in dialogue with bidders. Bidders canask questions about the item or terms for payment or shipment of theitem or any other concern by contacting the seller through the auctionwebsite, by email, or by phone if the seller has listed a phone number.

In step 130, the auction closes at an acceptable price and terms. Thebuyer's bid will exceed the minimum amount requested and according tothe terms listed on the auction or as agreed to between the buyer andseller. In step 135, the seller receives the payment from the buyerunder the payment choice selected, such as cash, money order, creditcard, check, use of an online payment service, or use of an escrowservice. If using an escrow service, the escrow service accepts andholds the payment until the buyer approves the item. Only after thebuyer communicates approval is the payment tendered to the seller. Instep 140, the item is shipped to the buyer. Under the prior art,shipping is direct to a buyer's specified address by a shipper, such asFedEx, UPS, DHL, or the U.S. mail. The item is delivered directly to thebuyer without any intervention by a third party and only after paymentfor the item or tendering of the payment to an escrow service. Theauction process for the seller then ends at step 45.

FIG. 3 is an example of the process flow of the prior art method for abuyer using an online auction website. The process starts at step 205.At step 210, the buyer accesses the auction website. In step 215, thebuyer searches the website for the item. This may involve a focusedsearch using a search function on the website to find specificcategories of items based on a keyword or phrase, or the search may besimply browsing the website at random and finding an interesting itemthat attracts the attention of the buyer. In step 220, the buyer becomesknowledgeable about the item. This may consist of additional researchabout the item on other Internet websites, consultation with referencebooks or catalogs, or dialogue with the seller.

At step 225, the buyer places a bid on the item. This process mayinvolve an automated bidding process on the website where a maximum bidamount is specified by the buyer, but the actual amount being bid at anyone time depends on the amount of the next lower competing bid. Themaximum bid is only reached as the bidding approaches the specifiedmaximum up to the maximum specified. In step 230, the buyer wins theauction by bidding the highest amount that exceeds any specified minimumbid. The buyer must then meet the terms of the bid in step 235. This caninclude paying by the required mode (e.g. cash, credit card, moneyorder, cashier check, etc) within a required time frame, meeting anyagreed shipping options, or resolving any warranty or security issues orconcerns (e.g. use of an escrow service). In step 240, the buyerreceives the shipment. If an escrow service has been used, the buyer hasto contact the escrow service after receiving the item so that thepayment is released to the seller. In step 245, the buyer providesfeedback on the auction website. Most auction websites promote leavingfeedback on users of the site, often both for buyers and sellers, toprovide comments on the transaction. The process ends at step 250.

FIG. 4 shows the process flow under the invention for the seller. Theprocess begins at step 305. In step 310, the seller accesses the auctionwebsite over the Internet. In step 315, the seller registers to sell theitem and specify any particulars. At this point in the process, theseller will select the mode of payment for the item, specify theshipping procedures, describe the item, set a minimum bid, select theduration time for the auction, and select secured payment and inspectionoption. If the payment and inspection service option is chosen, thebuyer will have to comply with the service's terms and select a shippingdestination. In step 320, the seller lists the item for auction. Anyfees are paid and the seller uploads any available pictures and ifdesired. In step 325, the seller will engage in dialogue bidders.Bidders can ask questions about the item or terms for payment orshipment of the item or any other concern by contacting the sellerthrough the auction website, by email, or by phone if the seller haslisted a phone number.

In step 330, the auction closes at an acceptable price and terms. Thebuyer's bid will exceed the minimum amount requested and according tothe terms listed on the auction or as agreed to between the buyer andseller. In step 335, the payment and inspection service receives thepayment. In step 340, the seller is notified that the payment has beenreceived and is valid with funds available and confirms the shippingaddress for the store performing the service. The shipping address isselected by the buyer at the time the payment is made or when making thebid. The seller ships the item to the address for the specified paymentand inspection service at step 345. The payment and inspection servicemay be the shipper (e.g. UPS, FedEx, DHL, etc) or an independent thirdparty. In step 350, the seller either receives the payment from thepayment and inspection service or the returned item. If the buyeraccepts the item, then the funds are released to the seller. If thebuyer rejects the item, then the funds are returned to the buyer, lessreturn shipping fees. The process ends at step 355.

FIG. 4 shows the process flow of the invention for a buyer using anonline auction website. The process starts at step 405. At step 410, thebuyer accesses the auction website over the Internet. In step 415, thebuyer searches the website for the item. This may involve a focusedsearch using a search function on the website to find specificcategories of items based on a keyword or phrase, or the search may besimply browsing the website at random and finding an interesting itemthat attracts the attention of the buyer. In step 420, the buyer becomesknowledgeable about the item. This may consist of additional researchabout the item on other Internet websites, consultation with referencebooks or catalogs, or dialogue with the seller.

At step 425, the buyer places a bid on the item. This process mayinvolve an automated bidding process on the website where a maximumamount is specified by the bid, but the actual amount being bid for anyamount less than that maximum depends on the amount of the next lowercompeting bid. The maximum bid is only placed as the bidding approachesthe specified maximum. In step 430, the buyer wins the auction bybidding the highest amount that exceeds any specified minimum bid. Thebuyer must then meet the terms of the bid in step 435. This can includepaying by the required mode (e.g. cash, credit card, money order,cashier check, etc) within a required time frame, meeting any agreedshipping options, resolving any warranty or security issues or concerns(e.g. use of an escrow service or the payment and inspection service).During this step, the buyer may have the option of selecting the paymentand inspection service or the service may be required by the seller. Ifused, at this step, the buyer selects a store with a shipping addressthat is provided to the seller for shipping and pays the service by anacceptable means (e.g. check, credit card, debit card, etc).

In step 440, the buyer receives notice of shipping and delivery to thepayment and inspection service. The shipping service can provide thepayment and inspection service at a company store, such as at a FedExKinko's store as one example, but shipping can be by any entityperforming that service, such as FedEx, UPS, and DHL, with theinspection service performed in any convenient store location owned,operated and/or licensed by the service. In step 445, afternotification, the buyer goes to the store for inspection and receipt ofthe item. While an employee or agent of the service is present andobserving, the buyer unpacks the item to inspect while remaining in thestore and being observed. In step 450, the buyer accepts or rejects theitem. If the buyer accepts the item, then the service releases thepayment to the seller. If the buyer rejects the item, then the serviceissues a credit to reimburse the buyer in an amount equal to thepurchase price less shipping costs. The items is repackaged at the storeand promptly returned to the seller. In step 455, the buyer providesfeedback on the auction website. The process ends at step 460.

FIG. 6 shows an example of a process flow for listing an item for onlinesale under the prior art. The process starts at step 505. In step 510,the seller accesses the sale website over the Internet. In step 515, theseller registers to sell the item and specify any particulars. At thispoint in the process, the seller will select the mode of payment for theitem, specify the shipping procedures, describe the item, set a saleprice, and select the duration time for the sale listing. In step 520,the seller lists the item for sale. Any fees are paid and the selleruploads any available pictures if desired. In step 525, the seller willengage in dialogue with potential buyers. Buyers can ask questions aboutthe item or terms for payment or shipment of the item or any otherconcern by contacting the seller through the sale website, by email, orby phone if the seller has listed a phone number. In step 530, the salecloses at an acceptable price and terms. There may be an optionavailable for an offer below that of the listed sale price that theseller has the option of accepting. In step 535, the seller receives thepayment from the buyer under the payment choice selected, such as cash,money order, credit card, check, use of an online payment service, oruse of an escrow service. If using an escrow service, the escrow serviceaccepts and holds the payment until the buyer approves the item. Onlyafter the buyer communicates approval is the payment tendered to theseller. In step 540, the item is shipped to the buyer. Under the priorart, shipping is direct to a buyer's specified address by a shipper,such as FedEx, UPS, DHL, or the U.S. mail. The item is delivereddirectly to the buyer without any intervention by a third party and onlyafter payment for the item or tendering of the payment to an escrowservice. The auction process for the seller then ends at step 545.

FIG. 7 is an example of the process flow of the prior art method for abuyer using an online sale website. The process starts at step 605. Atstep 610, the buyer accesses the sale website. In step 615, the buyersearches the website for the item. This may involve a focused searchusing a search function on the website to find specific categories ofitems based on a keyword or phrase, or the search may be simply browsingthe website at random and finding an interesting item that attracts theattention of the buyer. In step 620, the buyer becomes knowledgeableabout the item. This may consist of additional research about the itemon other Internet websites, consultation with reference books orcatalogs, or dialogue with the seller.

At step 625, the buyer purchases the item by agreeing to pay the listedprice or offering to buy for less than the listed price that the selleraccepts. In step 630, the sale ends with the buyer and seller agreeingto any special terms or deviation from the listed price. The buyer mustthen meet the terms of the sale in step 635. This can include paying bythe required mode (e.g. cash, credit card, money order, cashier check,etc) within a required time frame, meeting any agreed shipping options,or resolving any warranty or security issues or concerns (e.g. use of anescrow service). In step 640, the buyer receives the shipment. If anescrow service has been used, the buyer has to contact the escrowservice after receiving the item so that the payment is released to theseller. In step 645, the buyer provides feedback on the auction or salewebsite. Most sale websites promote leaving feedback on users of thesite, often both for buyers and sellers, to provide comments on thetransaction. The process ends at step 645.

FIG. 8 shows the process flow under the invention for the seller. Theprocess begins at step 705. In step 710, the seller accesses the salewebsite over the Internet. In step 715, the seller registers to sell theitem and specify any particulars. At this point in the process, theseller will select the mode of payment for the item, specify theshipping procedures, describe the item, set a price, select the durationtime for the sale, and select secured payment and inspection option. Ifthe payment and inspection service option is chosen, the buyer will haveto comply with the service's terms and select a shipping destination. Instep 720, the seller lists the item for sale. Any fees are paid and theseller uploads any available pictures and if desired. In step 725, theseller will engage in dialogue with potential buyers. Buyers can askquestions about the item or terms for payment or shipment of the item orany other concern by contacting the seller through the sale website, byemail, or by phone if the seller has listed a phone number.

In step 730, the sale ends at an acceptable price and terms. In step735, the payment and inspection service receives the payment. In step740, the seller is notified that the payment has been received and isvalid with funds available and confirms the shipping address for thestore performing the service. The shipping address is selected by thebuyer at the time the payment is made or when making the bid. The sellerships the item to the address for the specified payment and inspectionservice at step 745. The payment and inspection service may be theshipper (e.g. UPS, FedEx, DHL, etc) or an independent third party. Instep 750, the seller either receives the payment from the payment andinspection service or the returned item. If the buyer accepts the item,then the funds are released to the seller. If the buyer rejects theitem, then the funds are returned to the buyer, less return shippingfees. The process ends at step 755.

FIG. 9 shows the process flow of the invention for a buyer using anonline sale website. The process starts at step 805. At step 810, thebuyer accesses the sale website over the Internet. In step 815, thebuyer searches the website for the item. This may involve a focusedsearch using a search function on the website to find specificcategories of items based on a keyword or phrase, or the search may besimply browsing the website at random and finding an interesting itemthat attracts the attention of the buyer. In step 820, the buyer becomesknowledgeable about the item. This may consist of additional researchabout the item on other Internet websites, consultation with referencebooks or catalogs, or dialogue with the seller.

At step 825, the buyer purchases the item by agreeing to pay the listedprice or offering to buy for less than the listed price that the selleraccepts. In step 830, the sale ends with the buyer and seller agreeingto any special terms or deviation from the listed price. The buyer mustthen meet the terms of the sale in step 835. This can include paying bythe required mode (e.g. cash, credit card, money order, cashier check,etc) within a required time frame, meeting any agreed shipping options,resolving any warranty or security issues or concerns (e.g. use thepayment and inspection service). During this step, the buyer may havethe option of selecting the payment and inspection service or theservice may be required by the seller. If the service is used, at thisstep, the buyer selects a store with a shipping address that is providedto the seller for shipping and pays the service by an acceptable means(e.g. check, credit card, debit card, etc).

In step 840, the buyer receives notice of shipping and delivery at thepayment and inspection service. The shipping service can provide thepayment and inspection service, such as at a FedEx Kinko's store, butshipping can be by any entity in that business, such as FedEx, UPS, andDHL, with the inspection service performed in any convenient storelocation with an inspection location or even at the home or otherlocation. In step 845, after notification, the buyer goes to the storefor inspection and receipt of the item. While an employee or agent ofthe service is present and monitoring the buyer, the buyer unpacks theitem to inspect while remaining in the store and being observed.Alternatively, the inspection location can use a camera surveillancesystem to monitor the buyer. In step 850, the buyer accepts or rejectsthe item. If the buyer accepts the item, then the service releases thepayment to the seller. If the buyer rejects the item, then the serviceissues a credit to reimburse the buyer in an amount equal to thepurchase price less shipping costs. The item is repackaged at the storeand promptly returned to the seller. In step 855, the buyer providesfeedback on the auction website. The process ends at step 860.

While the invention has been particularly shown and described withrespect to preferred embodiments, it will be readily understood thatminor changes in the details of the invention may be made withoutdeparting from the spirit of the invention. Having described theinvention, I claim:

1. A method for securely selling an item on an online auction computersystem, comprising the steps of: offering an item for sale on the onlineauction website supported by the online auction computer system;receiving at the online auction computer system messages from potentialbuyers that are considered bids on the item offered for sale on theonline auction website; accepting at the online auction computer systemat least one of said bids to be the purchasing bid for the sale of theoffered item; receiving a notification message at the online auctioncomputer system that the payment corresponding to the bid amount for theitem was received by an entity associated with a payment and inspectionservice; receiving a notification message at the online auction computersystem that the purchased item was received by an inspection servicesite; after providing the purchased item to the buyer for a monitoredinspection at the inspection service site in such a manner as to allowthe buyer to inspect the item but not alter or swap the item during aninspection period, receiving a notification message that the buyer'spayment is being transferred to the seller upon acceptance of the itemby the buyer during the monitored inspection or the buyer's payment isbeing returned back to the seller upon rejection of the item by thebuyer after the monitored inspection.
 2. The method for securely sellingan item on an online auction of claim 1 wherein the monitoring of thebuyer inspecting the item is performed by observation in person by anagent or associate of the payment and inspection service.
 3. The methodfor securely selling an item on an online auction of claim 1 wherein themonitoring of the buyer inspecting the item is performed using a camerasurveillance system.
 4. The method for securely selling an item on anonline auction of claim 1 wherein the seller pays for the use of thepayment and inspection service through a deduction from the paymentfunds.
 5. The method for securely selling an item on an online auctionof claim 1 wherein the buyer pays for the use of the payment andinspection service.
 6. The method for securely selling an item on anonline auction claim 1 wherein the buyer has a predetermined time periodto inspect the purchased item during the monitored inspection.
 7. Themethod for securely selling an item on an online auction of claim 1wherein the item is repacked and returned to the seller if the buyerrejects the item after the monitored inspection.
 8. The method forsecurely selling an item on an online auction of claim 6 wherein if thebuyer rejects the purchased item after the monitored inspection, thepayment funds, less any fees, are refunded to the buyer and the item isrepackaged and returned to the seller.
 9. The method for securelyselling an item on an online auction of claim 6 wherein if the buyeraccepts the purchased item after the monitored inspection, the paymentfunds, less any fees, are transferred to the seller.
 10. A method forsecurely selling an item on an online auction computer system,comprising the steps of: providing an online auction website operated bythe online auction computer system to display offered items put up foran auctioned sale, said online auction computer system receiving bidsfrom potential buyers of the offered item and accepting at least one ofsaid bids as the accepted bid to purchase said item; receiving anotification message at the online auction computer system that thepurchased item was received from the seller at an inspection locationsite operated on behalf of a payment and inspection service; receiving anotification message at the online auction computer system that thepayment finds corresponding to the accepted bid from the buyer werereceived by an entity associated with the payment and inspectionservice; after allowing the buyer to inspect the purchased item at theinspection location during a monitored inspection at the inspectionlocation where the buyer can inspect the purchased item without alteringor swaping the item, receiving a notification at the online auctioncomputer system that the payment finds were released by the payment andinspection service to the seller if the item is accepted by buyer orwere refunded to the buyer upon rejection of the purchased item by thebuyer.
 11. The method for securely selling an item on an online auctioncomputer system of claim 10 wherein the payment and inspection servicededucts any fees before releasing or refunding funds by the payment andinspection service.
 12. The method for securely selling an item on anonline auction computer system of claim 10 wherein the seller selectsthe method of payment.
 13. The method for securely selling an item on anonline auction computer system of claim 10 wherein the seller selectsthe shipping procedures for transferring the item to the inspectionstation.
 14. The method for securely selling an item on an onlineauction computer system of claim 10 wherein the buyer inspects theshipped item in the presence of an agent of the payment and inspectionservice.
 15. The method for securely selling an item on an onlineauction computer system of claim 10 wherein the buyer inspects theshipped item while being monitored by a camera surveillance system. 16.The method for securely selling an item on an online auction computersystem of claim 10 wherein the buyer inspects the item during themonitored inspection within a specified time frame.